KBRA cuts three WFCM 2017-C42 ratings, affirms remaining CMBS classes
Deteriorating collateral performance in the $630.8 million WFCM 2017-C42 transaction is prompting fresh rating pressure on part of the commercial mortgage-backed securities deal. The review reflects estimated losses tied to five K-LOCs and comes as three assets in the pool remain in special servicing as of the October 2026 remittance report.
Highlights
- KBRA downgraded Class C to BBB (sf), Class D to B- (sf), and Class X-D to B- (sf) of WFCM 2017-C42 after a surveillance review citing weaker pool performance.
- Estimated losses for five K-LOCs, representing 24.3% of the pool, and lower loss-adjusted credit enhancement levels were primary drivers of the downgrades.
- As of October 2026, three specially serviced assets make up 13.4% of the pool, while weighted-average KLTV improved to 89.9% from 99.1% at the last ratings change.
Surveillance review drives rating changes
As reported by Kroll Bond Rating Agency, the agency downgraded three classes of certificates and affirmed all other outstanding ratings for WFCM 2017-C42 after a surveillance review found weaker pool performance since its last ratings change in November 2025.The classes affected are Class C, cut to BBB (sf) from A- (sf), Class D, cut to B- (sf) from BB (sf), and Class X-D, cut to B- (sf) from BB (sf). KBRA said the actions also reflect its estimated losses for five K-LOCs, representing 24.3% of the pool, and the resulting loss-adjusted credit enhancement levels.
Special servicing and pool metrics
As of the October 2026 remittance report, the transaction has three specially serviced assets, equal to 13.4% of the pool. KBRA identified six K-LOCs overall, accounting for 27.9% of the pool, including the specially serviced assets, and said five of those K-LOCs have estimated losses.Excluding the K-LOCs with estimated losses, the transaction's weighted-average KLTV stands at 89.9%, improving from 99.1% at KBRA's last ratings change and 101.4% at securitization. The weighted-average KDSC is 1.83x, compared with 1.77x at the last ratings change and 1.85x at issuance.
In earlier coverage, we examined KBRA’s surveillance review that affirmed BX 2025-JDI CMBS ratings despite improving loan metrics.
Latest Mortgage News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
